Economic Commentary by Peter Schiff

For years we have been warned by Keynesian economists to fear the so-called "liquidity trap," an economic cul-de-sac that can suck down an economy like a tar pit swallowing a mastodon. They argue that economies grow because banks lend and consumers spend. But a "liquidity trap," they argue, convinces consumers not to consume and businesses not to borrow. The resulting combination of slack demand and falling prices creates a pernicious cycle that cannot be overcome by the ordinary forces that create growth, like savings or investment. Read More >>

Peter Schiff calls the latest move by the Fed, "Operation Screw".  A man that eloquent should be listened to!

In the last few Reasonable Action newsletters, we discussed how our Constitutional rights are being systematically dismantled by our courts, especially the Supreme Court. In this article, we will illustrate one of the methods by which this is done. It is intended to show not only the progressive nature of this oppression, but also that the Justices are aware of what they are doing. To that purpose, a great deal of this article will be direct quotations from the opinions rendered in a case decided by the Supreme Court on May 24, 2004, Thornton v. United States (541 U.S. 615). This case is available on the internet¹ for anyone who wants to read the decision in its entirety. To minimize confusion, direct quotations from the opinion will be shown indented and in italics, and internal citations are often omitted.

According to the background given of the case, a police officer (Nichols) in an unmarked car suspected Thornton of something (of what was never stated) because he believed Thornton was purposely trying not to pass him on the road. His suspicions aroused, Nichols pulled off so Thornton would have to drive by, and then ran a check on his license plate. He discovered the plates were not registered to the car Thornton was driving, and so decided to pull him over. Before he could do that, however, Thornton parked his car, got out, and began walking away. Nichols pulled in behind him, got out, and approached Thornton, who, according to the officer appeared nervous, was sweating, and began rambling and licking his lips.

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Libertarianism: the radical idea that other people are not your property!

I was recently sent an email from a local businessman who railed against the anti-business mentality of the current Democratic administration. He described in some detail how Barack Obama doesn't have a clue as to how businesses create things including jobs. No argument there. He details the utter incompetence of agencies like the IRS, the gross misapplication of unemployment benefits and of course our favorite non-government, government agency, the U.S. Postal service (made private by Republican Richard Nixon of course). I'm sure he could have made a longer list but brevity is after all a virtue. He goes on to show how we spend more than we take in and how a private family doing the same thing would quickly go belly up. Again, he's just talking about what constitutes responsible behavior. He then concludes that the solution is to elect a select group of conservative tea party folks with business experience or at least business knowledge and who presumably, along with others of like mind, will put the country on the right track.

While well meaning, let me address each of these points in some detail.

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After Democrats in New York rammed a sweeping assault on the right to keep and bear arms through the legislature that failed to exempt police officers from the draconian restrictions, gun owners and even some lawmakers are planning what has been dubbed potentially the largest act of civil disobedience in state history. According to news reports, gun rights activists are urging everyone to defy far-left Governor Andrew Cuomo’s new registration mandate while daring authorities to “come and take it.”

"History teaches us that history teaches us nothing."
~ Hegel

So far, Hegel seems to be right. Cycles come and cycles go — especially in terms of economics and liberty. Those who observe and remember, can discover, analyze, and predict the next cycle while the majority of the people remain in the dark, repeatedly surprised by avoidable calamities.

Jefferson killed a bank. Jackson killed a bank. Now it's our responsibility to untold generations to stand up and throw off the shackles of yet another criminal syndicate with the respectable sounding name: "Federal Reserve Bank."

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